Business

South attracts bulk of FDI

Vietnam’s southern region received $1.7 billion worth of foreign direct investment (FDI) in the first quarter, accounting for 51.6 per cent of all foreign investment in the country, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

The area’s huge potential in developing industries such as hi-tech, IT, and oil and gas, in addition to banking and finance and tourism is said to be behind the dominant figures.

The area attracted investors from 41 countries and territories. Japan was the largest investor during the quarter, with $309.3 million, or 18.1 per cent of the region’s total. South Korea and Brunei were the second and third largest investors, with $270 million, or 15.7 per cent, and $148.2 million, or 8.6 per cent, of total investment, respectively.

Manufacturing and processing was the most attractive sector for foreign investors, receiving $1.29 billion, or 76 per cent of the FDI pledged in the area. Water supply and waste treatment was second, with $115 million, followed by wholesale and retail with $105.7 million.

Some are major projects, such as a $115 million steel mill emissions processing facility of Zincox Resources PLC from the UK in Ba Ria Vung Tau, a $55 million garment factory invested by Brunei’s Promax Textile Viet Nam Co. in Dong Nai’s Nhon Trach 3 Industrial Zone, and a $38 million Brunei-funded furniture manufacturing project in Dong Nai.